2000News

Government said to owe three months of subsidies

Ignacio Alvaro, president of Union Fenosa, the Spanish parent company of the largest power distributors in the DR, and Miguel Olivera, general manager of the distributors, Edenorte and Edesur did their own playing in the ongoing volleyball of blames regarding the power crisis in the DR. In a press conference called with the presence of Radhamés Segura, administrator of the state electricity utility (CDE), the two said that the government owes them three months of subsidies they are making to the price at which they are billing electricity. They said that the power generators had increased fuel costs of 45%, but that the government was picking up the differential so that the increase in fuel not be passed on to consumers. News reports say that the government has authorized a 15% increase in billing so far this year. They disputed claims that they had violated their contracts saying they had invested US$34 million so far, and had in plans to invest another US$82 million before the year’s end. Investments have been made to rehabilitate networks and substations in the National District and 21 provinces. As a result, the system is less vulnerable to a hurricane and breakdowns. They said problems with billings and customer service was primarily due to the high employee rotation. They said they are willing to go to court on grounds of claims made by the Superintendence of Electricity that they are billing the blackouts.